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ntel Corporation (Nasdaq: INTC) and its OEM partners unveiled the first wave of new tablets and tablet convertible designs based on Intel Core vPro , Intel Core and Intel Atom processors, including the new Atom processor Z2760 (formerly codenamed Clover Trail ).
The new Intel Atom processor-based devices provide consumers and business users with a wide choice of innovative, sleek and stylish designs with long battery life and class-leading performance. Additionally, they will be able to experience Windows* 8 while continuing to run all the programs they know and love.
Intel Atom Z2760: Powerful Computing On-the-Go
The Intel Atom Processor Z2760 allows for the thinnest, lightest tablets built on Intel architecture " as thin as 8.5mm and as light as 1.5 pounds " making carrying and storing a powerful tablet less cumbersome and more convenient.
As more and more people take their devices on-the-go, such considerations as battery life and size have become increasingly important, and devices using the Intel Atom Z2760 offer a full-featured tablet computing experience that doesn t compromise its performance over battery life. The dual-core, four-thread SoC provides exceptionally long battery life with more than 3 weeks of connected standby and more than 10 hours of local HD video playback.1
Tablets and tablet convertibles powered by Intel Atom processors and running Windows 8 deliver a highly intuitive and responsive experience using touch, keyboard and mouse or a pen, while providing capabilities such as Intel Burst Technology, Intel Hyper-threading Technology. Utilizing the multitasking capability of Intel architecture, people will experience incredibly fast response, allowing them to swiftly load and switch among their favorite applications.
Enhanced Security, Collaboration and Software Support in the Enterprise
Intel is enabling a choice of innovative mobile designs for the enterprise, including those powered by Intel Atom, Intel Core, and Intel Core vPro processors. Intel architecture provides corporations with the flexibility and compatibility they are used to, resulting in a lower total cost of ownership (TCO) coupled with the personalized productivity that people crave.
Intel tablets with Windows 8 support the millions of existing applications, devices and full-featured components used within corporations and include the security and manageability features corporate IT managers demand. Additionally, these devices easily integrate into existing corporate infrastructures, providing the ability to join a domain, access shared network resources and run both new Windows Store apps and familiar Windows desktop applications side by side.
The Intel Atom Processor Z2760 tablets deliver the mobility and experience that business users desire and set a new bar for addressing IT demand for built-in security and manageability with Windows 8. The new Intel Atom Processor Z2760 is built to seamlessly integrate into a business computing environment. Intel Atom Z2760 offers Secure Boot and firmware-based Intel Platform Trust Technology (PTT).
Intel Core processor-based tablets with Windows 8 will provide the intelligent performance and responsive power for the most productive and personalized employee experience. In addition, tablets based on the Intel Core vPro processors deliver the most comprehensive and flexible enterprise-class hardware-assisted security, manageability and virtualization capabilities for business computing.
With Intel vPro technology, Intel Core-based processors provide remote system access and management, regardless of power or OS state, and offer the most robust set of security features including Enhanced Intel Anti-Theft Technology, Intel Secure Key, Intel OS Guard, Enhanced Intel Identity Protection Technology, and Intel Trusted Execution Technology.
We all know this but the market is already discounted all this. There is no data point to measure success so far.
If you really look at it objectively, Intel has missed this mobility train so far. What happens in 2013 is still future and not present and that is the problem with the stock price.
It may be trivial but it is all over the news/business TV. In today's Fast Money program, Dan Niles and others were comparing Intel to next AMD. Intel has missed the mobile boat so far. Can it catch up to be a player, no one knows till it happens?
Right now it is very depressing.
If you look at it, there were 17K Jan. 13 20 puts were traded. That speaks volume.
I was thinking the same.
Pessimism on Intel has reached extreme. Every thing is about apple.
see below;
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Jim Cramer made some solid calls during the Lightning Round on "Mad Money" Tuesday night. Here's a brief recap:Heckmann Corp. (NYSE: HEK) and Key Energy (NYSE: KEG): Cramer is bullish on both, saying they might go lower if oil does and he doesn't see that happening.
Opts for KeyCorp (NYSE: KEY) over Fifth Street Finance (NYSE: FSC).
Intel (Nasdaq: INTC) is dead in the water until Apple (Nasdaq: AAPL) drops Samsung in favor of the venerable chip giant. Otherwise, a push into smartphones is null.
Wasn't sure about Corrections Corp. (NYSE: CXW), being that it is a contract company.
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MMOY,
You are absolute right.
Apple used Power chips before coming to Intel. Intel was strong then and it can be strong again. The ipad is already eating Intel lunch any way according to analysts. This fact is baked in Intel stock price-with PC already dead.
Yes, that is a loss of market share for Intel but Intel will become stronger that before. I agree that dumping Intel will be good thing for Intel.
AMD CFO left the company. stock down after hours.
http://www.bloomberg.com/news/2012-09-17/amd-s-cfo-seifert-resigning-three-years-after-joining-chipmaker.html
All the news from IDF is about technology. Intel has not monetized its process advantage so far. For all of us who are long term investors, it will come soon but for analysts and other traders, there are better investment out there. That is why Intel stock is not reacting that much in my opinion.
I want Intel stock to go way up and it will go up.
I don't think Joey is doubting this. He clearly stated that Intel is a very strong manufacturing companies but has not translated into shareholders value.
I was against entering into smartphones/servers markets but now I am seeing why not do it to experiment and see what happens.
It is a blog which any one of could write. It is not an article by any analyst who covers AMD. Whether AMD goes bankrupt, no one knows but you can only survive for so long on stolen/borrowed money.
That fact was lost by EU commission or US FTC etc.
INTC: Merrill Cuts Estimates, Pounds Table on ‘Haswell,’ Process Lead
By Tiernan Ray
Merrill Lynch’s Vivek Arya today joins the chorus of those cutting expectations for Intel (INTC), trimming his Q3 and Q4 estimates, and lowering his 2013 EPS estimates, and lowering his price target to $30 from $34, while reiterating a Buy rating on the shares.
Citing some weakness in PC sales from his Asia “checks,” Arya cut his Q3 estimate to $13.9 billion in revenue and 54 cents EPS from a prior $14.3 billion and 60 cents. For the full year, he sees $54.66 billion and $2.20, down from $55.86 billion and $2.36 per share, and for 2013, he sees $56.86 billion and $2.30, down from $59.1 billion and $2.46.
However, Arya’s real focus in the report is less the bad than the good, in particular, the importance of Intel’s process technology lead, and he pounds the table for the stock:
Next-gen chip manufacturing has become a 3-horse race between Intel, TSMC and Samsung, with Intel holding a 1 to 4 year lead, in our view. As we saw in 1H12, foundries were unable to ramp 28nm capacity, leading to product delays. Rising costs/ complexity (tri-gate) could further widen this gap. We believe this could enable Intel to gain a foothold (vs. zero today) in mobile over the next 2 years, as smartphone/tablet vendors look to Intel as a second or even primary source […] We firmly believe in Intel’s ability to reliably produce the lowest cost and highest performance silicon can help it maintain a dominant position in servers/data centers (20% of sales, 10-15% CAGR), and transition from legacy PCs to next-gen smartphones, tablets, Ultrabooks and other converged devices in the next 1-2 years. Investors, meanwhile, benefit from a 3.6% div yield, $7.5bn in available buybacks (6% of mkt cap) and <10x PE.
With Intel hosting its “Intel Developer Forum” next week in Silicon Valley, Arya is particularly enchanted with what will be the unveiling of “Haswell,” a new processor architecture designed to lead to greater power savings at 22 nanometers:
Haswell will be the first processor to be designed from the ground up to fully optimize the power savings and performance benefits from the move to 3D or tri-gate transistors on the 22nm process node. Improved graphics performance. Haswell is expected to double the graphics performance vs. Ivy Bridge processors bringing its performance on par with the $50-$70 graphics cards.
Intel shares today are up 55 cents, or 2%, at $24.93.
http://blogs.barrons.com/techtraderdaily/2012/09/06/intc-merrill-cuts-estimates-pounds-table-on-haswell-process-lead/
I agree. Atom was a concept for low power x86 devices. It established itself. Now time is to move to the market it was intended for.
Here is the down grade on ARMH
-----------------------
Deutsche Bank downgraded ARM Holdings (NASDAQ: ARMH) from Hold to Sell. PT cut to 400p.
Deutsche analyst said, "Despite secular EPS growth drivers, we believe ARM's high valuation will come under pressure as falling smartphone chip prices impact royalty growth, Intel's (Nasdaq: INTC) odds to gradually gain market share in mobile are improving and the Windows-on-ARM ramp could be below expectations. With EPS growth slowing and longer-term estimate uncertainty increasing, we believe ARM can de-rate to a still rich 20x 2014 P/E, closer to its expected 2012-16 EPS CAGR of 13%."
For an analyst ratings summary and ratings history on ARM Holdings click here. For more ratings news on ARM Holdings click here.
Shares of ARM Holdings closed at $27.24 yesterday, with a 52 week range of $21.64-$31.55.
This is from yesterday news.
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Intel: Argus Cuts Q3, Year View on Euro Weakness, Ultrabook Slowness
By Tiernan Ray
Argus Research’s Jim Kelleher this morning joins the discussion this week on whether Intel (INTC) will meet this quarter’s expectations on the Street. The current consensus is $14.25 billion and 60 cents per share in profit.
Kelleher, who has a Buy rating on Intel and a $34 price target, thinks Intel will report just under the midpoint of its forecast range for $13.8 billion to $14.8 billion, or slightly less than $14.2 billion.
Kelleher has reduced his estimates after concluding that the company is contending with economic pressures, as well as the slow ramp of “ultrabook” computers it has been endorsing, and the slow development of tablets based on Microsoft‘s (MSFT) Windows:
Intel may deliver calendar 3Q12 revenue toward the low end of guidance, in our view, based on Persistent macro-economic headwinds buffeting the global economy and particularly Europe. In addition to weaker revenue, Intel could see a less-favorable CPU mix, based on signs that the Ultrabook – which uses some of Intel’s highest-end PC processors – has not really caught on yet. We expect Intel’s overall volumes to remain reasonably good, based on emerging economy demand; but we expect the Ultrabook ramp to be slower in emerging economies compared with mature nations. Thus, Intel’s emerging economy mix is likely to remain below company margins. In addition to economic headwinds and competitive pressures from tablets, Ultrabook is being impacted by its lack of alignment with the Windows 8 launch, which will not take place until October 2012. Based on past precedent, Windows 8 will likely ramp slowly, with slightly better early uptake by consumers; enterprise buying of PCs with Windows 8 will likely be pushed into 2013.
Kelleher also cut his year EPS view to $2.40 per share from $2.52 previously, on a non-GAAP basis, given the same concerns.
Shares of Intel this morning are up 57 cents, or 2.4%, at $24.84.
http://blogs.barrons.com/techtraderdaily/2012/08/31/intel-argus-cuts-q3-year-view-on-euro-weakness-ultrabook-slowness/
Intel long range plan is to be in US. I am not privy to Intel internal plan but my guess would be in 2014. That all depends how it does in the rest of the world. That part should be very clear inthe next 12 months.
Intel long range plan is to be in US. I am not privy to Intel internal plan but my guess would be in 2014. That all depends how it does in the rest of the world. That part should be very clear inthe next 12 months.
Intel phone will be for European market. Intel will not introduce any phone in US till it has garnered some market share in Europe and Asia. There is no chance for failure in US.
It is market related. Weekly options are expiring as well.
That is how Intel approached 64 bit CPU. It mastered the 32 bit CPU market and then it started attacking 64 bit CPU market with Xeon and Itanim and was able to push out DEC, Sun, MIPs other architecture except IBM Power. Even Power is in decline
It is no surprise Intel approaching it from down to up.
It is another win for Intel. More of these phones on the market, more chances for folks to compare these against ARM. You may not buy, but there a lots of folks out there who will. Every one can't afford iphone/Samsung.
It is matter of time before HTC/Samsung will join Intel
BERLIN, Aug 30 (Reuters) - Chinese group ZTE , the world's fourth-largest mobile phone maker, unveiled its first smartphone model using Intel processors, marking an important break into a top-tier handset maker by the U.S.-based group.
ZTE said on Thursday its Grand X IN model, which will go on sale in Europe next month, will mark the start of a wider portfolio of Intel-based products.
"This is the first among a number of handsets in the next 12 to 18 months," Chris Edwards, European business development and marketing chief at ZTE, said in an interview.
Intel has fallen far behind in processors for smartphones and tablets and is betting its lead in manufacturing technology will help it break into the key growth market.
"Intel has to forge a path into mobile given the sizeable growth opportunity. Failure to do so further risks ARM using its mobile dominance as a platform to attack Intel's core business in PC," said Geoff Blaber, analyst at research firm CCS Insight.
Smartphones Challenge Chip Limits
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By SHARA TIBKEN
Smartphones and other devices keep getting smarter, but that may change if a key step in manufacturing computer chips isn't updated soon.
Semiconductors provide the brains, data storage and other capabilities of electronic products, so improving chips is necessary to make gadgets smaller, faster and cheaper.
Engineers are squeezing more transistors on each square of silicon, but the pace of miniaturization—known as Moore's Law after Intel Corp.'s co-founder—faces a major hurdle. The current photographic process that lays out circuitry on chips isn't believed capable of creating the tinier patterns needed for chips later in the decade.
Chip manufacturers have run into problems developing a new technique known as extreme ultraviolet, or EUV, lithography. Tools based on the technology cost about twice as much as current machines—commanding price tags of more than $100 million each, by some estimates—and can't yet process chips quickly enough to be practical for high-volume manufacturing.
Further delays in refining EUV could ripple through the electronics industry in the next several years, making it too costly for many manufacturers to build more advanced chips and slowing progress of smartphones and computers.
"It's not like the industry is totally hosed if it doesn't happen, but it will be bad," said David Kanter, principal analyst at Real World Technologies.
The stakes are big for chip manufacturers, which are betting billions of dollars on EUV and ASML Holdings NV, which is developing tools based on the technology. Intel recently announced plans to invest up to $4.1 billion in the Dutch company and its research, while Taiwan Semiconductor Manufacturing Co. agreed to put up about $1.4 billion and Samsung Electronics Co. promised about $975 million.
Current lithography systems use light to project patterns of circuitry on chips, which are fabricated on silicon wafers. The problem is the wavelength of conventional light is now larger than the features being defined, a bit like trying to paint a thin line with too large a brush.
Chip companies have employed many tricks to extend the current technology, including shining light through liquid to get finer image resolution. They also sometimes run wafers through machines multiple times to achieve further gains, an expensive process akin to taking multiple exposures to get one photo.
EUV offers the equivalent of a finer brush by producing much shorter wavelengths of light than current lithography tools.
But EUV comes with headaches. The shorter wavelength causes EUV rays to be absorbed by almost everything, including air, so it must be created in a vacuum environment using mirrors.
A laser, the same kind used in metalworking to cut through thick plates of steel, is trained on droplets of tin about as thin as human hair that fly at about 240 miles per hour across the vacuum chamber. The interaction produces light that is delivered to a scanner that patterns the circuits on a chip.
ASML has so far been hampered by the strength of the light in its systems. The company has found it difficult to hit the tin with the laser perfectly every time, and the tin can coat the mirrors, two factors that hurt the power of the light.
The company won't say how many wafers it is able to process in an hour with its current tools, but analysts believe it is about 20 to 30. To be widely adopted by the industry, EUV systems need to handle about 100 wafers an hour, analysts say.
Cymer Inc., a company developing the light source for ASML's EUV machines, said it has increased the power of the light about tenfold over the past year and a half, boosting the amount of wafers processed each hour. It's aiming to make another tenfold improvement and then double or triple the power again after that, said Nigel Farrar, a Cymer fellow and vice president of marketing and lithography technologies.
EUV should be used in high volumes by early adopters in 2014, said Noreen Harned, ASML senior director of technology.
While work on EUV continues, manufacturers are taking steps to extend current methods as long as they can. They also are looking at alternatives in case EUV doesn't pan out as hoped.
"We have a path to achieve our technology goals both with and without EUV," said Yan Borodovsky, an Intel senior fellow and director of advanced lithography.
One alternative approach is directed self assembly, or DSA, in which chemicals are combined to build superfine patterns on a chip. Companies are in the early stages of working on the technology, but experts see promise.
Nikon Corp., ASML's biggest rival, is looking to modify its equipment to make it DSA-friendly, said Donis Flagello, a Nikon Research Corp. of America fellow who specializes in imaging. The company doesn't currently offer an EUV tool, focusing for now on developing tools for a larger generation of wafers the industry is contemplating to lower manufacturing costs per chip. Because more chips can be made from each wafer, it cuts costs of each processor.
"EUV is really, really expensive," Mr. Flagello said. "We're not sure it makes sense for customers to have EUV without [larger] wafers."
Still, the investments to date show the industry is placing most of its bets on EUV as a contender to keep Moore's Law going.
"I've got full confidence ASML will make the technology viable," said Mark Durcan, chief executive of memory chip maker Micron Technology Inc. "In my mind, it's not a question of if. It's a question of when."
Write to Shara Tibken at shara.tibken@dowjones.com
Intel: Bulls and Bears Pile Up Estimate Cuts, Q3 Miss Possible
By Tiernan Ray
As mentioned earlier today, analysts have been turning up the organ music regarding threats to Intel‘s (INTC) results, with a burst of cautious reports this morning.
This latest negative bout kicked off last week with a note to clients on Thursday from Davenport & Co.’s Drake Johnstone, who reiterated a Neutral rating on the shares, writing that the company may miss the consensus for this quarter of $14.25 billion in revenue and 65 cents a share in profit, given weak PC sales reported by Dell (DELL) last Tuesday, and by Hewlett-Packard (HPQ) last Wednesday.
Johnstone is modeling $13.8 billion and 57 cents, and he cut his Q4 estimate to $14.4 billion and 65 cents, below the consensus $15.2 billion and 71 cents. Johnston adds that in his opinion, “many consumers and businesses are purchasing smart phones and tablets instead of PCs.”
Then this morning, Citigroup‘s Glen Yeung reiterated a Buy rating on Intel, but cut his target price by $2 to $32, writing that “the potential for pre-announcement is high,” in his view, given that amidst a generally “stable” semiconductor market, “One exception is the PC supply chain that continues
to deteriorate, driven by a combination of poor macro conditions, tablet
cannibalization, and a pause before the Windows 8 launch.”
It’s unlikely the PC market will live up to Intel’s view for year shipment growth in the “low single digits” on a percentage basis.
Yeung cites the same poor Dell and HP results, and weakness reported by notebook makers such as Quanta and Wistron.
Yeung now models Q3 revenue of $13.78 billion, down from $14.2 billion previously, and 55 cents, down from 60 cents. And for Q4 he sees revenue of $14.19 billion, down from $14.78 billion. Yeung also cut his 2013 revenue estimate by over a billion dollars, to $57.1 billion.
JMP Securities’s Alex Gauna, who has a Market Outperform rating on the shares, and a $33 price target, today cut his full-year EPS estimate to $2.35 froma prior $2.55, on revenue of $54.9 billion, which is below the consensus $55.82 billion and $2.41 per share.
Writes Gauna, things that Intel can control, such as its manufacturing prowess, are offset by the prospect that Microsoft‘s (MSFT) next version of Windows, “Windows 8,” won’t really lift PC sales:
Our contacts are incrementally less optimistic about Windows 8 as a near-term catalyst in light of already slow PC demand trends, continuing macroeconomic uncertainty, and greater momentum behind smartphones and tablets. Somewhat offsetting these downside risks to Intel is its freedom of pricing, stemming from the lack of any meaningful competition from AMD (AMD) and the cost benefits it should be incurring from better 22nm fab loading and graphics market share gains, along with successful Ivy Bridge integration. We also believe Data Center (server) demand trends are healthy.
Gauna thinks this quarter will miss estimates, with projection for $13.95 billion and 58 cents a share.
Lastly, Sterne Agee‘sVijay Rakesh, who has a Neutral rating on the stock, cut his estimate this quarter to $13.9 billion and 56 cents from $14.1 billion and 60 cents, and cut Q4 numbers as well.
Rakesh thinks tablet computers are a risk to the “ultrabook” laptops that Intel and Microsoft are pushing:
We believe while expectations in the PC Supply chain are high for Win8, actual PC OEM builds-sell through might fall short given the plethora of Ultrabooks, Touch, WinRT, Android, Win8, and iPhones launched in a limited holiday window in 4Q12 post a late October Win launch, with potential inventory overhang into 1H13.
But he’s also worried about pressure on chip prices from those tablets, and from smartphones, beyond just this year:
L-T Mini-iPads, Android-Win8-WinRT Tablets Present Secular Lower ASP
Challenges – With overall Tablet/mini-iPad prices approaching the magic clearing price of $299-399, we believe target processor ASPs are in the $20-$50 range, a challenge to selling a high-end $100-$150 Corei3-i5 into the Tablet market. The Handset Market is becoming a big barbell with Apple-Samsung at One End and China at the Other End – An increasingly limited and competitive market opportunity with a more limited Handset OEM-base, declining ASPs and IP patent challenges.
Intel shares today are down 2 cents at $24.89.
http://blogs.barrons.com/techtraderdaily/2012/08/27/intel-bulls-and-bears-pile-up-estimate-cuts-q3-miss-possible/?mod=BOLBlog
Another down grade.
Aug 27 (Reuters) - Intel Corp :
* Sterne Agee cuts Intel Corp price target to $24 from $25; rating
neutral
The reason for downtrend in Intel stock-may be.
Analysts at Citigroup think a negative preannouncement by Intel (Nasdaq: INTC) is likely. Analyst Glen Young said in a note today that the chances of the negative preannouncement were high.
Citigroup maintained a Buy rating on Intel stock, but cut the price target to $32 from $34.
Analysts said the company s guidance of 2.2-9.6 percent sequential growth was somewhat at risk. Low-single digit growth in the PC unit was also at risk.
Citi analysts cut FY12 EPS estimates on Intel to $2.25 from $2.36. For 2013 they cut estimates to $2.44 from $2.56.
For an analyst ratings summary and ratings history on Intel click here. For more ratings news on Intel click here.
Shares of Intel closed at $24.91 yesterday, with a 52 week range of $19.16-$29.27.
Apple got $1.0B-going to $3.0B. Intel fine is much smaller relative to that.
You mean tit for tat by Korean
I don't think I stated love it or leave it. We all are investing in Intel(majority of us) knowing that the dividend is double taxed. what I stated is that we have to invest according the laws on the books. If we don't like what we see, we do options at our end.
I am not stock price has any thing to do with double taxation on dividend. It is quite clear from the this blog that majority of us invested in Intel. 61% of Intel are held by institutions and the rest by individual like you and me.
Stock price has a ton of other factors which I am sure you are aware of.
Tenchu,
Exactly. You made my points even clearer. We do exactly what the law requires us do. Or we don't do those things that we don't like. Investing is the same way. We invest what we believe in. Double taxation is part of the game as far as dividends are concerned. Has it stopped from investing in Intel or any other stock that pays dividend. Answer is no.
What Saturn stated is a fact. That is the present law. We all have to invest in the current environment. We all wish that there was no double taxation. If we don't like the double taxation, then we should not invest.
Yes, we should fight to avoid double taxation by voting or what ever other legal means we have on our hands.
When analysts mention future stock price, It is understood to be 12 month target. It is not open ended.
ARMH: Evercore Starts at Buy on Expanding Market Prospects
By Tiernan Ray
Evercore Partners’s Patrick Wang late last night initiated coverage of chip technology licensor ARM Holdings (ARMH) with an Overweight rating and a $32 price target, writing that the stock ”
is a core technology holding as it provides the foundation that the leading chip innovators use for their next-gen SOCs [system-on-a-chip]” microprocessors.
Wang expects ARM to “encroach on Intel‘s (INTC) legacy turf” by invading the server market and the notebook computer market starting next year, leading to a dramatic increase in the company’s total addressable market (TAM):
We estimate ARM’s TAM to grow from 26.1bn units in 2011 to 36.0bn in 2015. As such, we anticipate robust growth and model royalty and licensing revenues at a 19% and 8% CAGR, respectively, from 2011 to 2015. With an improving mix, prudent spend, and a declining tax rate, we see a 20% CAGR to EPS through 2015. In the near-term, ARM is a thematic play for the next few quarters as we anticipate positive press on WinRT devices, microservers, and the “ARM Collective.”
At the same time, ARM won’t suffer significant losses in the mobile phone and tablet market from Intel, thinks Wang:
Despite an accelerating effort from Intel, we think ARM defends its share in smartphones / tablets for the most part. Our estimates assume 7% and 9% in losses for smartphones and tablets APs, respectively, through 2015. Offsetting these headwinds are a higher royalty rate and greater share in peripherals.
Wang is modeling slightly lower revenue this year than the Street has been estimating, though he thinks ARM could see upside given the company’s licensing business is “fairly robust” and given that “royalty expectations are in good shape.” He also thinks “Further, we believe an aggressive ramp at Apple (AAPL) and Samsung Electronics (005930KS) this quarter could provide some relief to 4Q royalties. Those two are quite significant as we think the pair represents over 25% of PD royalties and nearly 65% of overall smartphone / tablet PD royalties today.”
Wang is modeling $872 million in revenue and 14.5 British pence per share in profit, which, he writes compares to the average Street estimate for $876 million and 14.4 pence.
ARM shares today are up 7 cents, or 0.3%, at $26.96.
http://blogs.barrons.com/techtraderdaily/2012/08/14/armh-evercore-starts-at-buy-on-expanding-market-prospects/
4:17 PM
Berkshire Sells Entire Intel Stake
By Avi Salzman
Berkshire Hathaway (BRKB) sold its entire stake in Intel (INTC) as of the end of the second quarter, according to an SEC filing that was just released.
Berkshire held 7,745,000 shares in the chip-maker as of the end of the first quarter.
INTC: Wells, Longbow See Upside on Servers, New Products
By Tiernan Ray
A number of bullish notes emerged this morning on Intel (INTC), some of them prompted by the company’s 10-Q filing for the quarter it reported July 18th, which offered a disappointing revenue view for this quarter, and a reduced outlook for the year, with Intel citing macroeconomic risks and slower-than-expected PC sales.
Regarding the 10-Q, Wells Fargo’s David Wong, who has an Overweight rating on Intel shares and a $33 to $39 “valuation range,” notes that there are “no surprises” as far as additional info on the quarter or the outlook.
However, Wong takes the opportunity to defend Intel’s Q3 view as being better than most:
We think it is notable that Intel has the highest September quarter sequential growth guidance midpoint of various major chip companies we monitor (6% for Intel, compared to, for example, 5.5% for Broadcom, 2.5% for Maxim, and flattish for Qualcomm and TI) . We think that strong new product ramps (Romley-based servers, Ivy-Bridge based ultrabooks, Atom-based Windows 8 tablets perhaps in the fourth quarter) and firm microprocessor pricing trends could help drive Intel’s sales growth in the second half of this year.
Joanne Feeney of Longbow Research reiterates a buy rating on Intel and a $34 price target, writing that she had a meeting this week with the company’s director of IR, Gary Willihnganz, and “came away with further confidence in the company’s near-term prospects and long-term strategic plan.”
Feeney observes that Intel’s likely to perform better than expected in Q4 based on its seeing server microprocessor sales rise by more than 15%. She also sees the company hitting its gross margin target of 64% for this year with the mix of server chip sales.
But Feeney also notes that the company seems very earnest about its competitive position in the tablet computer market going into the fall:
#1 priority for Intel is to return growth to the notebook segment through the advent of Ultrabooks. It sees itself in a fight for a share of the consumer wallet and expects the sleek and powerful UB to compel consumers to refresh aging PCs and to eat into iPad sales. Discussions revealed that Intel powers 40 touch-enabled (Win8) UBs slated for release in 4Q, and is in 135-140 UB designs, all together. Intel continues to expect UBs to comprise 40% of all consumer notebook sales exiting 2012 and highlighted the Toshiba at ~$699 as an example of an affordable and compelling early offering.
Intel shares today are down 18 cents, or 0.7%, at $25.75.
http://blogs.barrons.com/techtraderdaily/2012/08/02/intc-wells-longbow-see-upside-on-servers-new-products/
That is exactly what I was thinking. Analysts communities are blind to these technical issues and will not understand. It has been believing what ARMH has been saying for so long.
Just a thought. Why pay at all? Just refuse to do business in Europe. I know it is an extreme step but that is what is needed to wake Europe up. If this fine stand and Google pays, there is no chance Intel will win its hearing.
WBMW,
How long it will take for AMD to follow your plan? If that was so simple, why AMD has not followed even half of these. Let us give AMD all the credit and it does follow what you are suggesting, is Intel standing still. In technology, it is very difficult to catch up once you get so behind. Intel did catch up with AMD once it was behind as it has financial power to do so by setting up multiple teams in parallel.
In my opinion, it is running out of options. It has no acquirers left to take over AMD
Summary of bullish and bearish comments from various analysts.
-----------------
11:05 AM
Intel: Buy the Resilience, Says Bulls; New Normal, Say Bears
By Tiernan Ray
Shares of Intel (INTC) are up 62 cents, or 2.4%, at $26 following last night’s in-line Q2 revenue report and cut in the company’s year outlook.
Revenue in the quarter fell below the mid-point of the range that Intel originally offered in April as a result of weakness in the NAND flash memory chip market. However, the reduced outlook for this year, with sales growth of perhaps 3% to 5%, was a result of macroeconomic worries that are hitting PC growth in mature markets, CEO Paul Otellini said.
The company’s server chip business saw revenue rise by 15%, helped by the “Romley” processor introduction in the Spring. That was a clear positive that was widely cited in notes this morning.
Although Otellini remarked that Intel had taken share from competitor Advanced Micro Devices (AMD), AMD’s stock is doing alright today, rising 7 cents, or 1.4%, to $4.94. Moreover, PC-related stocks are faring well, including Hewlett-Packard (HPQ), up 43 cents, or 2.3%, at $19.30, Dell (DELL), up 11 cents, or almost 1%, at $12.23, and Microsoft (MSFT), up 52 cents, or 1.7%, at $30.17.
While Intel’s chart is clearly positive, there is a great divide this morning among analysts over whether the diminished outlook makes it better or worse to buy the shares now:
Bullish!
Joanne Feeney, Longbow Research: Reiterates a Buy rating and a $34 price target. “We expect Intel to continue to see a mix shift towards low-end desktop and notebook markets, but we see strength in the company’s server products offsetting the impact on margins. As Romley and Ivy Bridge continue to ramp, we expect to see gross margins expand on lower unit costs, and expect TAM expansion to help fuel growth in 2013.”
Jonathan Pitzer, Credit Suisse: Reiterates an Outperform rating and a $35 price target, writing that, “Macro risks still persist, but no more so for INTC than the rest of Semis/the stock market. Sub-seasonal guide for C3Q, only seasonal for C4Q – despite lean inventory and Win8 – might actually mean INTC stock is less exposed, especially relative to continued negative investor sentiment. We disagree with but at least understand the structural bear call on INTC. The tactical call of disappointing revenue coupled with uncontrollable spending driving major EPS revisions is losing steam.”
Ross Seymore, Deutsche Bank: Reiterates a Buy rating and a $33 price target. “Intel delivered solid 2Q results and gained considerable mkt share vs. competition. Importantly, the co guided cautiously for 3Q/2H, acknowledging softer macro while also illustrating the resilience of its business model by generating solid profitability and FCF. We continue to believe INTC can outgrow its competition in MPUs, deliver strong growth in DCG and in its non- core areas (Mobility, NAND, Embedded etc.).”
Uche Orji, UBS: Reiterates a Buy rating and a $34 price target. “While it lowered full year sales growth guidance to +3-5% from high-single-digit resulting from the challenging macro, gross margin stays resilient due to higher ASPs softening the impact of top line weakness. We believe: 1) expectations have been reasonably reset, 2) Data Center growth has more runway than we feared, 3) the new product transition to ultrabooks is positive for ASPs/gross margin, 4) low channel inventory sets up for potential restocking in 2H if ultrabooks are well received or the macro improves.”
Bearish!
Patrick Wang, Evercore Partners: Reiterates an Equal Weight rating and a $26 price target. “It’s not safe to get in the water yet as there’s a chance Intel’s lowered expectations may still prove optimistic and we head towards a supply / demand imbalance later this year. Absent an improving macro, it’s hard to be constructive in a sea of negative data points. That said, we liked (a) robust DCG growth, (b) prudent op-ex controls, (c) unchanged 2012 GM guidance, and (d) capitulation to a more realistic FY growth target of +4% YoY vs. prior +8% YoY.”
Mike Burton, Northland Capital Markets: Reiterates a Market Perform rating and a $27 price target. “INTC is forecasting revenues to go up a less-than-seasonal 2-10%, or 6% sequentially, which is exactly in line with our expectation (but off a slightly smaller Q2), compared to the Street Consensus estimate for an 8% rise, and normal seasonality of up 9-10%. […] While INTC did guide below seasonal (and the Street) for Q3, we expect the stock to perform well given there was no ‘cliff’ in revenues for Q3.”
Cody Acree, Williams Financial Group: Reiterates a Hold rating. “While we believe we will likely see stronger seasonal PC activity in Q4, we are hesitant to expect a return to normal levels, particularly when considering that macro activity is likely not significantly different in the second half than the muted growth we have seen through the first few months. We expect mature market softness to persist, a strong dollar to continue to drive higher system build costs and emerging markets will likely grow nicely, albeit at a slower pace than seen over the past few quarters.”
http://blogs.barrons.com/techtraderdaily/2012/07/18/intel-buy-the-resilience-says-bulls-new-normal-say-bears/